Self-Regulatory Organizations; Notice of Filing of Proposed Rule Change by NYSE Arca, Inc. Amending Its Rules Regarding the Listing of Option Series With $1 Strike Prices, 77689-77691 [2010-31224]
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Federal Register / Vol. 75, No. 238 / Monday, December 13, 2010 / Notices
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–31200 Filed 12–10–10; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
Electronic Comments
• Use the Commission’s Internet
comment form https://www.sec.gov/
rules/sro.shtml; or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSE–2010–76 on the
subject line.
[Release No. 34–63462; File No. SR–
NYSEArca–2010–106]
Paper Comments
December 8, 2010.
Self-Regulatory Organizations; Notice
of Filing of Proposed Rule Change by
NYSE Arca, Inc. Amending Its Rules
Regarding the Listing of Option Series
With $1 Strike Prices
Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that, on
November 24, 2010, NYSE Arca, Inc.
(the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed
with the Securities and Exchange
All submissions should refer to File
Commission (the ‘‘Commission’’) the
Number SR–NYSE–2010–76. This file
proposed rule change as described in
number should be included on the
subject line if e-mail is used. To help the Items I and II below, which Items have
been prepared by the Exchange. The
Commission process and review your
Commission is publishing this notice to
comments more efficiently, please use
only one method. The Commission will solicit comments on the proposed rule
post all comments on the Commission’s change from interested persons.
Internet Web site https://www.sec.gov/
I. Self-Regulatory Organization’s
rules/sro.shtml. Copies of the
Statement of the Terms of Substance of
submission, all subsequent
the Proposed Rule Change
amendments, all written statements
The Exchange proposes to amend its
with respect to the proposed rule
rules regarding the listing of $1 strike
change that are filed with the
prices. The text of the proposed rule
Commission, and all written
change is available at the principal
communications relating to the
office of the Exchange, the
proposed rule change between the
Commission’s Public Reference Room,
Commission and any person, other than on the Commission’s Web site at
those that may be withheld from the
https://www.sec.gov and https://
public in accordance with the
www.nyse.com.
provisions of 5 U.S.C. 552, will be
II. Self-Regulatory Organization’s
available for Web site viewing and
Statement of the Purpose of, and
printing in the Commission’s Public
Statutory Basis for, the Proposed Rule
Reference Room on official business
Change
days between the hours of 10 a.m. and
In its filing with the Commission, the
3 p.m. Copies of such filing also will be
self-regulatory organization included
available for inspection and copying at
the principal office of the Exchange. All statements concerning the purpose of,
and basis for, the proposed rule change
comments received will be posted
and discussed any comments it received
without change; the Commission does
on the proposed rule change. The text
not edit personal identifying
of those statements may be examined at
information from submissions. You
the places specified in Item IV below.
should submit only information that
The Exchange has prepared summaries,
you wish to make available publicly. All set forth in sections A, B, and C below,
submissions should refer to File
of the most significant parts of such
Number SR–NYSE–2010–76 and should statements.
be submitted on or before January 3,
15 17 CFR 200.30–3(a)(12).
2011
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
1 15
2 17
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15:42 Dec 10, 2010
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PO 00000
U.S.C. 78s(b)(1).
CFR 240.19b–4.
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77689
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
1. Purpose
The Exchange proposes to amend
Rule 6.4 Commentary .04 to improve the
operation of the $1 Strike Price Program.
Currently, the $1 Strike Price Program
only allows the listing of new $1 strikes
within $5 of the previous day’s closing
price. In certain circumstances this has
led to situations where there are no atthe-money $1 strikes for a day, despite
significant demand. For instance, on
November 15, 2010, the underlying
shares of Isilon Systems Inc. opened at
$33.83. It had closed the previous
trading day at $26.29. Options were
available in $1 intervals up to $31, but
because of the restriction to only listing
within $5 of the previous close, the
Exchange was not able to add $32, $33,
$34, $36, $37 or $38 strikes during the
day.
The Exchange proposes that $1
interval strike prices be allowed to be
added immediately within $5 of the
official opening price in the primary
listing market. Thus, on any day, $1
Strike Program strikes may be added
within $5 of either the opening price or
the previous day’s closing price.
On occasion, the price movement in
the underlying security has been so
great that listing within $5 of either the
previous day’s closing price or the day’s
opening price will leave a gap in the
continuity of strike prices. For instance,
if an issue closes at $14 one day, and the
next day opens above $27, the $21 and
$22 strikes will be more than $5 from
either benchmark. The Exchange
proposes that any such discontinuity be
avoided by allowing the listing of all $1
Strike Program strikes between the
closing price and the opening price.
Additionally, issues that are in the $1
Strike Price Program may currently have
$2.50 interval strike prices added that
are more than $5 from the underlying
price or are more than a nine months to
expiration (long-term options series). In
such cases, the listing of a $2.50 interval
strike may lead to discontinuities in
strike prices and also a lack of parallel
strikes in different expiration months of
the same issue. For instance, under the
current rules, the Exchange may list a
$12.50 strike in a $1 Strike Program
issue where the underlying price is $24.
This allowance was provided to avoid
too large of an interval between the
standard strike prices of $10 and $15.
The unintended consequence, however,
is that if the underlying price should
decline to $16, the Exchange would not
be able to list a $12 or $13 strike. If the
E:\FR\FM\13DEN1.SGM
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77690
Federal Register / Vol. 75, No. 238 / Monday, December 13, 2010 / Notices
underlying stayed near this level at
expiration, a new expiration month
would have the $12 and $13 strike but
not the $12.50, leading to a disparity in
strike intervals in different months of
the same option class. This has also led
to investor confusion, as they regularly
request the addition of inappropriate
strikes so as to roll a position from one
month to another at the same strike
level.
To avoid this problem, the Exchange
proposes to prohibit $2.50 interval
strikes below $50 in all $1 Strike Price
Program issues, including long term
option series. At each standard $5
increment strike more than $5 from the
price of the underlying security, the
Exchange proposes to list the strike $2
above the standard strike for each
interval above the price of the
underlying security, and $2 below the
standard strike, for each interval below
the price of the underlying security,
provided it meets the Options Listing
Procedures Plan (‘‘OLPP’’) Provisions in
Rule 6.4A.3 For instance, if the
underlying security was trading at $19,
the Exchange could list, for each month,
the following strikes: $3, $5, $8, $10,
$13, $14, $15, $16, $17, $18, $19, $20,
$21, $22, $23, $24, $25, $27, $30, $32,
$35, and $37.
Instead of $2.50 strikes for long-term
options, the Exchange proposes to list
one long-term $1 Strike option series
strike in the interval between each
standard $5 strike, with the $1 Strike
being $2 above the standard strike price
for each interval above the price of the
underlying security, and $2 below the
standard strike price, for each interval
below the price of the underlying
security. In addition, the Exchange may
list the long-term $1 strike which is $2
above the standard strike just below the
underlying price at the time of listing,
and may add additional long-term
options series strikes as the price of the
underlying security moves, consistent
with the OLPP. For instance, if the
underlying is trading at $21.25, longterm strikes could be listed at $15, $18,
$20, $22, $25, $27, and $30. If the
underlying subsequently moved to $22,
the $32 strike could be added. If the
underlying moved to $19.75, the $13,
$10, $8, and $5 strikes could be added.
The Exchange also proposes that
additional long-term option strikes may
3 Rule 6.4A codifies the limitation on strike price
ranges outlined in the OLPP, which, except in
limited circumstances, prohibits options series with
an exercise price more than 100% above or below
the price of the underlying security if that price is
$20 or less. If the price of the underlying security
is greater than $20, the Exchange shall not list new
options series with an exercise price more than
50% above or below the price of the underlying
security.
VerDate Mar<15>2010
15:42 Dec 10, 2010
Jkt 223001
not be listed within $1 of an existing
strike until less than nine months to
expiration.
Finally, the Exchange represents that
it has the necessary systems capacity to
support the small increase in new
options series that will result from these
changes to the $1 Strike Price Program.
2. Statutory Basis
The Exchange believes that this
proposed rule change is consistent with
Section 6(b) of the Securities Exchange
Act of 1934 (‘‘Act’’),4 in general, and
furthers the objectives of Section 6(b)(5)
of the Act 5 in particular, in that it is
designed to prevent fraudulent and
manipulative acts and practices,
promote just and equitable principles of
trade, remove impediments to and
perfect the mechanism of a free and
open market and a national market
system, and, in general, to protect
investors and the public interest. In
particular, the proposed rule change
seeks to reduce investor confusion and
address issues that have arisen in the
operation of the $1 Strike Price Program
by providing a consistent application of
strike price intervals for issues in the $1
Strike Price Program.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
The Exchange does not believe that
the proposed rule change will impose
any burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
No written comments were solicited
or received with respect to the proposed
rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period (i)
as the Commission may designate up to
90 days of such date if it finds such
longer period to be appropriate and
publishes its reasons for so finding or
(ii) as to which the self-regulatory
organization consents, the Commission
will:
(A) By order approve or disapprove
the proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
4 15
5 15
PO 00000
U.S.C. 78f(b).
U.S.C. 78f(b)(5).
Frm 00085
Fmt 4703
Sfmt 4703
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s Internet
comment form https://www.sec.gov/
rules/sro.shtml; or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NYSEArca–2010–106 on
the subject line.
Paper Comments
• Send paper comments in triplicate
to Elizabeth M. Murphy, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NYSEArca–2010–106. This
file number should be included on the
subject line if e-mail is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site https://www.sec.gov/
rules/sro.shtml. Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street, NE.,
Washington, DC 20549, on official
business days between the hours of 10
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. All comments received will
be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–
NYSEArca–2010–106 and should be
submitted on or before January 3, 2011.
E:\FR\FM\13DEN1.SGM
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Federal Register / Vol. 75, No. 238 / Monday, December 13, 2010 / Notices
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.6
Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010–31224 Filed 12–10–10; 8:45 am]
Tennessee Valley Authority
(TVA).
ACTION: Issuance of Record of Decision
(ROD).
SMALL BUSINESS ADMINISTRATION
Revocation of License of Small
Business Investment Company
Pursuant to the authority granted to
the United States Small Business
Administration by the Final Order of the
United States District Court for the
Northern District of Texas, Fort Worth
Division, dated October 22, 2007, the
United States Small Business
Administration hereby revokes the
license of SBIC Partners II, L.P., a
Delaware Limited Partnership, to
function as a small business investment
company under the Small Business
Investment Company License No. 06/
76–0316 issued to SBIC Partners II, L.P.
on June 16, 1998 and said license is
hereby declared null and void as of July
28, 2010.
U.S. Small Business Administration.
Sean J. Greene,
Associate Administrator for Investment.
[FR Doc. 2010–31153 Filed 12–10–10; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
wwoods2 on DSK1DXX6B1PROD with NOTICES_PART 1
Surrender of License of Small
Business Investment Company
Pursuant to the authority granted to
the United States Small Business
Administration under the Small
Business Investment Act of 1958, under
Section 309 of the Act and Section
107.1900 of the Small Business
Administration Rules and Regulations
(13 CFR 107.1900) to function as a small
business investment company under the
Small Business Investment Company
License No. 02/72–0616 issued to
RockMaple Ventures, L.P., and said
license is hereby declared null and void
as of August 4, 2010.
U.S. Small Business Administration.
Sean J. Greene,
AA/Investment.
[FR Doc. 2010–31152 Filed 12–10–10; 8:45 am]
BILLING CODE 8025–01–P
CFR 200.30–3(a)(12).
VerDate Mar<15>2010
15:42 Dec 10, 2010
Douglas and Nolichucky Tributary
Reservoirs Land Management Plan, in
Cocke, Greene, Hamblen, Jefferson,
and Sevier Counties, TN
AGENCY:
BILLING CODE 8011–01–P
6 17
TENNESSEE VALLEY AUTHORITY
Jkt 223001
This notice is provided in
accordance with the Council on
Environmental Quality’s regulations (40
CFR 1500 to 1508) and TVA’s
procedures for implementing the
National Environmental Policy Act
(NEPA). TVA has prepared the Douglas
and Nolichucky Tributary Reservoirs
Land Management Plan for the 3,191
acres of TVA-managed public land on
these reservoirs in northeastern
Tennessee. On November 4, 2010, the
TVA Board of Directors (TVA Board)
approved the plan, implementing the
Preferred Alternative (Alternative C,
Modified Land Use Alternative)
identified in the final environmental
impact statement (FEIS). Under the plan
adopted by the TVA Board, TVAmanaged public land on Douglas and
Nolichucky tributary reservoirs has been
allocated into broad use categories or
‘‘zones,’’ including Project Operations
(Zone 2), Sensitive Resource
Management (Zone 3), Natural Resource
Conservation (Zone 4), Industrial (Zone
5), Developed Recreation (Zone 6), and
Shoreline Access (Zone 7). Allocations
were made in a manner consistent with
TVA’s 2006 Land Policy.
FOR FURTHER INFORMATION CONTACT:
Amy Henry, NEPA Specialist,
Environmental Permits and Compliance,
Tennessee Valley Authority, 400 West
Summit Hill Drive, WT 11D, Knoxville,
Tennessee 37902–1499; telephone (865)
632–4045 or e-mail abhenry@tva.gov.
SUPPLEMENTARY INFORMATION: TVA
manages public lands to protect the
integrated operation of TVA reservoir
and power systems, to provide for
appropriate public use and enjoyment of
the reservoir system, and to provide for
continuing economic growth in the
Tennessee Valley.
Douglas and Nolichucky tributary
reservoirs are located in northeastern
Tennessee. The reservoirs are along the
Nolichucky and French Broad rivers,
which flow west from North Carolina to
the Tennessee River. Existing uses
around the reservoirs on public and
private land include TVA project
operations, developed and dispersed
recreation, private residences, and
undeveloped areas. A total of 597 miles
of shoreline surrounds these reservoirs,
SUMMARY:
PO 00000
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77691
but the portion of shoreline owned and
managed by TVA differs greatly between
them, with 19 of 36 miles of Nolichucky
Reservoir shoreline being managed by
TVA while only 69 of the 561 miles of
Douglas Reservoir shoreline are
managed by TVA.
TVA originally acquired nearly 3,760
acres of land on the two reservoirs.
About 15 percent of that land has been
transferred to State and other Federal
agencies for public recreation or natural
resource conservation use. TVA
presently manages approximately 3,191
acres along these reservoirs. Reservoir
properties on Douglas Reservoir
previously were planned in 1965
utilizing a Forecast System. Nolichucky
Reservoir has never been planned.
The plan is designed to guide future
decision-making and the management of
these reservoir properties in a manner
consistent with the 2006 TVA Land
Policy and other relevant TVA policies.
Public Involvement
TVA published a notice of intent to
prepare an Environmental Impact
Statement (EIS) in the Federal Register
on May 30, 2008. Between May 30 and
July 15, 2008, TVA sought input from
individuals, various State and Federal
agencies, elected officials, and local
organizations. Thirty participants
attended a public scoping meeting held
on June 12, 2008, in Morristown,
Tennessee. TVA received over 100
scoping comments, the majority of
which concerned management of
natural and recreation resources,
reservoir water levels, and land
ownership issues on the Nolichucky
Reservoir. TVA used these comments to
develop three alternatives for
assessment in the EIS: Alternative A—
No Action Alternative; Alternative B—
Proposed Land Use Alternative; and
Alternative C—Modified Land Use
Alternative.
The notice of availability (NOA) of the
Draft EIS (DEIS) was published in the
Federal Register on March 12, 2010.
TVA accepted comments on the DEIS
until April 26, 2010. Approximately 40
people attended a public meeting on
April 6, 2010, in Newport, Tennessee.
TVA received a total of 38 comments
from individuals; interested
organizations; and Federal, State, and
local government agencies.
The majority of the public responses
focused on land use allocation for
specific parcels of TVA-managed land,
in particular on the Nolichucky
Reservoir. There were also comments
about the NEPA process and alternative
selection, stewardship of public lands,
recreation on public lands including the
safety of hunters and adjacent
E:\FR\FM\13DEN1.SGM
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]]>Agencies
[Federal Register Volume 75, Number 238 (Monday, December 13, 2010)]
[Notices]
[Pages 77689-77691]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-31224]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-63462; File No. SR-NYSEArca-2010-106]
Self-Regulatory Organizations; Notice of Filing of Proposed Rule
Change by NYSE Arca, Inc. Amending Its Rules Regarding the Listing of
Option Series With $1 Strike Prices
December 8, 2010.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that, on November 24, 2010, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Commission
is publishing this notice to solicit comments on the proposed rule
change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend its rules regarding the listing of
$1 strike prices. The text of the proposed rule change is available at
the principal office of the Exchange, the Commission's Public Reference
Room, on the Commission's Web site at https://www.sec.gov and https://www.nyse.com.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of those statements may be examined at
the places specified in Item IV below. The Exchange has prepared
summaries, set forth in sections A, B, and C below, of the most
significant parts of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 6.4 Commentary .04 to improve
the operation of the $1 Strike Price Program.
Currently, the $1 Strike Price Program only allows the listing of
new $1 strikes within $5 of the previous day's closing price. In
certain circumstances this has led to situations where there are no at-
the-money $1 strikes for a day, despite significant demand. For
instance, on November 15, 2010, the underlying shares of Isilon Systems
Inc. opened at $33.83. It had closed the previous trading day at
$26.29. Options were available in $1 intervals up to $31, but because
of the restriction to only listing within $5 of the previous close, the
Exchange was not able to add $32, $33, $34, $36, $37 or $38 strikes
during the day.
The Exchange proposes that $1 interval strike prices be allowed to
be added immediately within $5 of the official opening price in the
primary listing market. Thus, on any day, $1 Strike Program strikes may
be added within $5 of either the opening price or the previous day's
closing price.
On occasion, the price movement in the underlying security has been
so great that listing within $5 of either the previous day's closing
price or the day's opening price will leave a gap in the continuity of
strike prices. For instance, if an issue closes at $14 one day, and the
next day opens above $27, the $21 and $22 strikes will be more than $5
from either benchmark. The Exchange proposes that any such
discontinuity be avoided by allowing the listing of all $1 Strike
Program strikes between the closing price and the opening price.
Additionally, issues that are in the $1 Strike Price Program may
currently have $2.50 interval strike prices added that are more than $5
from the underlying price or are more than a nine months to expiration
(long-term options series). In such cases, the listing of a $2.50
interval strike may lead to discontinuities in strike prices and also a
lack of parallel strikes in different expiration months of the same
issue. For instance, under the current rules, the Exchange may list a
$12.50 strike in a $1 Strike Program issue where the underlying price
is $24. This allowance was provided to avoid too large of an interval
between the standard strike prices of $10 and $15. The unintended
consequence, however, is that if the underlying price should decline to
$16, the Exchange would not be able to list a $12 or $13 strike. If the
[[Page 77690]]
underlying stayed near this level at expiration, a new expiration month
would have the $12 and $13 strike but not the $12.50, leading to a
disparity in strike intervals in different months of the same option
class. This has also led to investor confusion, as they regularly
request the addition of inappropriate strikes so as to roll a position
from one month to another at the same strike level.
To avoid this problem, the Exchange proposes to prohibit $2.50
interval strikes below $50 in all $1 Strike Price Program issues,
including long term option series. At each standard $5 increment strike
more than $5 from the price of the underlying security, the Exchange
proposes to list the strike $2 above the standard strike for each
interval above the price of the underlying security, and $2 below the
standard strike, for each interval below the price of the underlying
security, provided it meets the Options Listing Procedures Plan
(``OLPP'') Provisions in Rule 6.4A.\3\ For instance, if the underlying
security was trading at $19, the Exchange could list, for each month,
the following strikes: $3, $5, $8, $10, $13, $14, $15, $16, $17, $18,
$19, $20, $21, $22, $23, $24, $25, $27, $30, $32, $35, and $37.
---------------------------------------------------------------------------
\3\ Rule 6.4A codifies the limitation on strike price ranges
outlined in the OLPP, which, except in limited circumstances,
prohibits options series with an exercise price more than 100% above
or below the price of the underlying security if that price is $20
or less. If the price of the underlying security is greater than
$20, the Exchange shall not list new options series with an exercise
price more than 50% above or below the price of the underlying
security.
---------------------------------------------------------------------------
Instead of $2.50 strikes for long-term options, the Exchange
proposes to list one long-term $1 Strike option series strike in the
interval between each standard $5 strike, with the $1 Strike being $2
above the standard strike price for each interval above the price of
the underlying security, and $2 below the standard strike price, for
each interval below the price of the underlying security. In addition,
the Exchange may list the long-term $1 strike which is $2 above the
standard strike just below the underlying price at the time of listing,
and may add additional long-term options series strikes as the price of
the underlying security moves, consistent with the OLPP. For instance,
if the underlying is trading at $21.25, long-term strikes could be
listed at $15, $18, $20, $22, $25, $27, and $30. If the underlying
subsequently moved to $22, the $32 strike could be added. If the
underlying moved to $19.75, the $13, $10, $8, and $5 strikes could be
added.
The Exchange also proposes that additional long-term option strikes
may not be listed within $1 of an existing strike until less than nine
months to expiration.
Finally, the Exchange represents that it has the necessary systems
capacity to support the small increase in new options series that will
result from these changes to the $1 Strike Price Program.
2. Statutory Basis
The Exchange believes that this proposed rule change is consistent
with Section 6(b) of the Securities Exchange Act of 1934 (``Act''),\4\
in general, and furthers the objectives of Section 6(b)(5) of the Act
\5\ in particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, promote just and equitable principles
of trade, remove impediments to and perfect the mechanism of a free and
open market and a national market system, and, in general, to protect
investors and the public interest. In particular, the proposed rule
change seeks to reduce investor confusion and address issues that have
arisen in the operation of the $1 Strike Price Program by providing a
consistent application of strike price intervals for issues in the $1
Strike Price Program.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period (i) as the Commission may
designate up to 90 days of such date if it finds such longer period to
be appropriate and publishes its reasons for so finding or (ii) as to
which the self-regulatory organization consents, the Commission will:
(A) By order approve or disapprove the proposed rule change, or
(B) institute proceedings to determine whether the proposed rule
change should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form https://www.sec.gov/rules/sro.shtml; or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NYSEArca-2010-106 on the subject line.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NYSEArca-2010-106. This
file number should be included on the subject line if e-mail is used.
To help the Commission process and review your comments more
efficiently, please use only one method. The Commission will post all
comments on the Commission's Internet Web site https://www.sec.gov/rules/sro.shtml. Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for Web site
viewing and printing in the Commission's Public Reference Room, 100 F
Street, NE., Washington, DC 20549, on official business days between
the hours of 10 a.m. and 3 p.m. Copies of the filing also will be
available for inspection and copying at the principal office of the
Exchange. All comments received will be posted without change; the
Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File Number SR-
NYSEArca-2010-106 and should be submitted on or before January 3, 2011.
[[Page 77691]]
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\6\
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\6\ 17 CFR 200.30-3(a)(12).
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Florence E. Harmon,
Deputy Secretary.
[FR Doc. 2010-31224 Filed 12-10-10; 8:45 am]
BILLING CODE 8011-01-P
